Construction sector will fall 3.3% this year, warns Capeco

During June the GDP of Construction fell 4.12%, thus accumulating a fall of 8.97% so far this yearaccording to the INEI.

From the Peruvian Chamber of Construction (Capeco) warn that the decrease in July would have been 4.9% as a result of a negative performance of cement consumption in twelve of the last thirteen months, specifically since September 2022.

Guido Valdivia, executive director of Capeco, emphasizes that the construction sector is going through its worst performance in the last twenty years — not counting the -42.1% seen in the first half of 2020 affected by the pandemic —.

In this sense, it expects construction to end in 2023 with a 3.3% drop, considering the data from its latest survey.

And, if it is expected to reach at least 0% in 2023, Valdivia points out that it should grow 9.3% in the August-December period; although the outlook would be complicated considering that the construction segments are still in negative territory: infrastructure (-5.1%); builders (-2.3%) and suppliers (-2.6%).

He also assured that “some consultants believe that the fall in private investment will be stronger” this 2023, with decreases of up to 8.3% (Macroconsult).

“Most likely, the negative behavior of the first seven months of the year will continue until the end of the year”summarized Valdivia, not without highlighting that the reasons behind his reading will depend on the magnitude of the El Niño Phenomenon and the speed with which the government of Dina Boluarte can consolidate the real estate market for low-income housing and manage state infrastructures.